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Chaince Digital seeks 20B share ceiling and reverse split authority

The vote follows the firm’s launch of an at-the-market program for up to $300 million of stock sales.

Reported · Written up by our desk · Market Structure

Shareholders of Chaince Digital Holdings will vote Monday on two proposals that would substantially expand the company’s flexibility for future financing. CryptoSlate reports the changes include increasing authorized ordinary shares from 1 billion to 20 billion and granting the board broad authority to conduct one or more reverse splits through the third anniversary of an Aug. 24 meeting.

If approved, a proposal would add 19 billion authorized shares, lifting the ceiling to 20 billion. A separate proposal would allow the board to execute reverse splits with each split potentially ranging from 2-for-1 to 200-for-1, with the cumulative reverse split ratio under the authority capped at 4,000-for-1. CryptoSlate adds that any actual share issuance or reverse split action would require later company steps.

The vote is tied to the company’s recent at-the-market stock sales plan, which allows up to $300 million of ordinary-share sales, according to the CryptoSlate report. The agreement is dated Aug. 19 with H.C. Wainwright named as agent or principal, but Wainwright is not obligated to sell any specific number or dollar amount.

CryptoSlate reports that the meeting begins at 10:00 a.m. Eastern in New York and online, with the proxy deadline set for Aug. 20 at 11:59 p.m. Eastern. Approval for both proposals requires a simple majority of votes cast, with abstentions and broker non-votes excluded from votes cast on the non-routine items.

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